Automarket - VW lays new Electro-Brand for China - BYD in focus
Europe's largest automaker Volkswagen is launching a new electric brand for China under the name ID. Unyx. The first model is expected to hit the market in the summer, according to a spokesperson at the world premiere of the first model in Anhui, where it will be produced. Four more models are set to follow by 2026. Volkswagen aims to make a good impression in China's booming electric vehicle market, where local competitors like BYD currently lead.
"Electric models like the new ID. Unyx are the key to winning over young, lifestyle-oriented customer groups," said Volkswagen China Brand CEO Stefan Mecha. The brand is expected to be positioned above the core brand Volkswagen and will also receive its own dealership network with 40 sales outlets in 20 cities.
Sister model of the Cupra Tavascan
The first model of the new brand closely resembles the Cupra Tavascan, which is produced in the same plant and is set to come to Europe in the fall. However, the ID. Unyx features a completely redesigned interior. The Cupra Tavascan is the first and only model in the group to be built in China and exported to Europe. The Cupra is not offered in China.
Volkswagen struggles to meet Chinese tastes with its electric models. Chinese buyers demand more software and connectivity in the car, including social media capabilities. In the rapidly growing electric vehicle market, a price war with affordable Chinese manufacturers has developed.
BYD surpasses Volkswagen
Volkswagen, which had long held the market leadership position in the country, had to concede this to the local challenger BYD in 2023, which sold more electric cars than Volkswagen did in total. While Volkswagen remains strong in gasoline cars, they play a minor role in electric vehicles. Of the 1.345 million vehicles delivered by all brand models in China in the first half of the year, only about 90,000 had an electric drive.
The company plans to develop more in China in the future to better meet the tastes of local customers. Volkswagen already entered into a cooperation with the Chinese automaker Xpeng last year. Together with the partner, two electric mid-size cars for China are planned to be launched in 2026. Whether they will then also appear under the ID. Unyx brand was left open by Volkswagen upon request.
- Volkswagen's new electric brand for China, ID. Unyx, is inspired by the design of the Cupra Tavascan, which is also produced in Anhui and set to be introduced in Europe.
- Germany's Volkswagen is eager to make a significant impact in China's rapidly expanding electric vehicle market, where domestic competitors like BYD currently hold a dominant position.
- The first model of the ID. Unyx brand, set to launch in the summer, will share production facilities with the Cupra Tavascan in Anhui, China.
- Volkswagen's strategic plan for China includes developing more locally tailored electric vehicles, as shown by their collaboration with Xpeng to introduce two mid-size electric cars in 2026.
- BYD, a Chinese automaker, surpassed Volkswagen in terms of electric vehicle sales in China in 2023, marking a shift in market leadership in the region.
- Volkswagen aims to cater to Chinese customers' preferences for in-car software, connectivity, and social media features, recognizing the need for more affordability in the region's booming electric automobile industry.
